Binance has frozen accounts belonging to another cryptocurrency exchange, Wex, after users claimed the latter was involved in money laundering activities.

Binance CEO Changpeng Zhao made the announcement on Twitter, stating that they had frozen all accounts belonging to Wex. The decision was made in response to an alert made by Twitter user RedDragon, who warned the public about the suspicious activities happening in the Wex exchange.

the identified accounts are frozen, please report to law enforcement and have a case number. We will work with LE. This is part of centralization we hate too, dealing with other exchange's mess (we don't even know the details). But we will do what we can. https://t.co/tgyYI5ptqx

In his tweet, Zhao said Binance had no knowledge of money laundering activities being done by Wex. He noted that they froze the accounts to stop the exchange from further using their platform for money laundering operations, saying that they are willing to cooperate with any law enforcement agency wishing to conduct a criminal investigation against the exchange.

Twitter user RedDragon claimed that Wex was using the Binance platform to move a large amount of the clients missing money to other accounts. Zhao explained that there had been an increase of smaller exchanges using big platforms to move their money. He added it is tiresome to have to sort messes created by other people.

Binance also asked investors with any of the blocked accounts from Wex to report the matter to the police before making any claims on the Binance platform.

Since its inception, Wex appears to have been operating on the wrong side of the law. The Russian-based cryptocurrency exchange, first came to the spotlight last year after its founder, Alexander Vinnik, was arrested for allegedly taking part in a $4 billion fraud. The investigations are still ongoing in the U.S. and Greece. Back then, Wex exchange was under the name BTC-e.

After the re-brand, the exchanges soon began observing suspicious activities including having BTC prices significantly higher than other players in the market. In July 2018, Wex stopped withdrawal services claiming that their system was under scheduled maintenance. Clients have since not been able to withdraw both cryptocurrencies and U.S. dollars, according to reports. Many of its users have gone to social media with claims that the exchange was a scam. They also termed the “maintenance” as an exit strategy organized by the owners.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The Vertex Ventures network has announced a “strategic investment” in Binance, as part of a wider deal that will result in the creation of Binance Singapore.

Binance, the world’s largest cryptocurrency exchange by daily trading volumes, is the latest company to secure the backing of Vertex Ventures, a group of investment companies indirectly owned by the government of Singapore.

Vertex, with around $2.5 billion in assets under management, will partner with Binance on the launch of the new Singapore exchange as part of the deal, which will provide fiat-to-crypto exchange for Singapore-based customers.

Headed by legendary CEO Changpeng Zhao, better known in crypto circles as CZ, Binance first announced its intention to expand into Singapore back in September. While on today’s volumes Binance is primarily a crypto-to-crypto exchange, the Singapore project is being seen as a bid to broaden the company’s fiat exchange offering.

Choon Chong Tay, managing partner at Vertex Ventures China, described CZ as “one of the most well-respected entrepreneurs in blockchain with high inspiration to build and promote the blockchain ecosystem.” His counterpart at Vertex Ventures Southeast Asia & India, Joo Hock Chua, said the group was looking forward to working with CZ and Binance in developing the new project.

The move follows on from a similar launch in Uganda, with the first customer deposits in local currency being accepted from this week. In a country where only 11% of the population currently holds a bank account, Binance considers this an exciting market for the emerging cryptocurrency sector.

A compliant platform in Singapore would put Binance on the right side of regulators in the island country, after the firm’s high profile difficulties in some jurisdictions, including New York, where they have been accused of “operating unlawfully.”

After relocating from Hong Kong to the more crypto-friendly jurisdiction of Malta, Binance hopes the Singapore project positions them as a regulated platform for regional Asian trade, with legal and regulatory certainty as a compliant exchange.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

International crypto exchange Binance announced on October 15 the launch of its fiat-to-crypto service in Uganda. The launch will be rolled out starting with support for ETH and BTC, with more digital currencies to follow. The cryptocurrencies will be available for conversion from Uganda’s national fiat (UGX) starting October 17.

Market expansion

The launch is in line with Binance’s action plan of market expansion through the introduction of several fiat-to-crypto exchanges in several countries. This is according to CEO and founder Changpeng Zhao, who added that Know-your-customer (KYC) procedures were already underway.

According to Binance’s CFO Wei Zhou, the launch is expected to cement sustainable economic stability in the country and the region as a whole. Binance hopes to bring more innovations to the region through such startups.

The move has been hailed by Uganda’s government as a huge step forward, despite warnings issued by the Bank of Uganda to investors against cryptocurrency risks in March 2017. The government has also registered intentions of using blockchain technology.

The move is not a sure win for Binance. On one hand, it could strengthen Africa’s grip on economic stability. On the other hand, it could backfire, as Binance doesn’t have enough experience offering a fiat-based exchange.

Crypto not legal tender: Bank of Zambia

Through a communique (in pdf) issued by the Bank of Zambia (BoZ), the Zambian government has warned that only it can issue currency. It reminded citizens that only the national currency has legal tender, adding that too many risks were associated with digital non-fiat currencies.

There has been growing public interest in cryptocurrencies that might have compelled the government to make its announcement. Notwithstanding, the government did not necessarily disclose what led to the decision other than to say that the BoZ had been receiving a significant amount of inquiries related to cryptocurrencies.

The government reiterated that it was supportive of innovations but only to desirable innovations. It warned of the risks accompanying crypto assets such as money laundering and funding terrorist activities. The BoZ statement follows a similar warning issued by the Zambian Securities and Exchange Commission this past February, which advised investors against digital currencies since they fell outside its mandated jurisdiction.

While cryptocurrencies come with some monetary characteristics—such as being used as a peer-to-peer method of payment—the Bank of Zambia noted that they did not fall within the four walls of “legal tender.”

The government defended the move, saying it was meant to protect consumers and its citizens in general against risks such as hacking, phishing and other forms of fraud. It argued that no legal recourse would be available to victims due to the absence of legislative mechanisms.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Chainalysis Chief Operating Officer Jonathan Levin said, “Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.”

Binance Chief Financial Officer Wei Zhou said, “Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”

Chainalysis claims that its software, Chainalysis KYT (Know your transaction), is the only real-time transaction monitoring solution for cryptocurrencies, which works by “pattern recognition, proprietary algorithms and millions of open source references to identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity.” The company, founded in 2014, has over 150 clients worldwide, including global law enforcement agencies and regulators.

Countries have provided regulatory frameworks that integrate AML compliance for the cryptocurrency trade. As of October 15 in Norway, new regulations cover “platforms that facilitate trading and exchanges by connecting buyers and sellers,” which exempts the trade of cryptocurrencies with other cryptocurrencies.

Australia has had its AML compliance legislation since April, which among other things requires exchanges to report transactions involving physical currency of AUD10,000 or more.

Last week, Binance delisted four altcoins, saying certain factors were considered, including “evidence of unethical/fraudulent conduct,” and “responsiveness to our periodic due diligence,” as well as quality of development, and communication with the public.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

In an effort to protect its users, cryptocurrency exchange Binance announced that it would delisting four cryptocurrency tokens from its platform, effective Oct. 12.

On its website, Binance said it has decided to delist Bytecoin (BCN), ChatCoin (CHAT), Iconomi (ICN), and Triggers (TRIG). Though the altcoins will be officially delisted on Friday at 10 a.m. UTC, customers still have until Nov. 12 to withdraw these coins and tokens from the crypto exchange.

According to Binance, the four coins failed to “maintain a high standard of quality.” The crypto exchange took into consideration several factors, which resulted in the removal of the digital assets. These include the team’s commitment to the project, quality and level of development activity, network or smart contract stability, level of public communication and activity, responsiveness to Binance’s periodic due diligence, evidence of unethical or fraudulent conduct, and contribution to a healthy and sustainable crypto ecosystem.

“Going forward, we remain committed to protecting our users and all Binance stakeholders and will continue to perform periodic reviews of all listed coins and tokens,” the crypto exchange stated.

Since the announcement, the prices of the currencies have dropped drastically. BCN, in particular, saw its prices drop by over 15%.

The news comes on the heels of Binance’s announcement that it would be donating all the fees it collects from listing new cryptocurrencies to charities. The new policy is expected to take effect immediately, and the crypto exchange hopes the donation will be used for “greater good.”

Binance said it “will continue to use the same high standard for the listing review process,” noting that “a large donation does not guarantee or in any way influence the outcome of our listing review process.” The new policy applies to any new applications, as well as those that have already been submitting and which are waiting for approval.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Binance, one of the world’s largest cryptocurrency exchanges, has come under fire for what some have viewed as exorbitant listing fees. It’s more than likely because of this, and not some altruistic vision, that the company announced yesterday that all of the fees it collects for listing new cryptocurrencies will be donated to charity.

The company said that its new policy is effective immediately. It added that it will donate the fees for the “greater good” and also that token developers can now tell the exchange what they would like to pay to have their tokens listed. Binance didn’t indicate that it would automatically accept the requested amount, but specified that there would be no minimum fee required.

According to the announcement, “Binance will continue to use the same high standard for the listing review process. A large donation does not guarantee or in any way influence the outcome of our listing review process.” It further said that the new policy applies to any new applications, as well as those that have already been submitting and which are waiting for approval.

Changpeng Zhao, the exchange’s CEO, said on Twitter, “I think this is a net win for us too. Charity will increase adoption, make the industry bigger, which in turn will benefit $bnb and @binance (and others too). Of course, we sacrifice short term direct gains. But if you keep a long term view, it’s a win-win on multiple fronts.”

This past August, Binance was targeted after a cryptocurrency developer tried to have his coin listed on the exchange. Christopher Franko, who created the blockchain platform Expanse, took to social media to complain that the exchange had asked him to pay 400 Bitcoin Core (BTC) to be listed, an amount that equaled approximately $2.6 million – not a reasonable fee for the majority of the startups in the blockchain space.

Zhao denied the allegation, saying that it was fake news. He asserted, “We don’t list shitcoins even if they pay 400 or 4,000 BTC…[The] question is not ‘how much does Binance charge to list?’ but ‘is my coin good enough?’ It’s not the fee, it’s your project! Focus on your own project!”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Binance Labs, an initiative by cryptocurrency exchange Binance to fund startups, has made a “multi-million dollar” investment in Contentos, a blockchain-powered network that allows creators to keep track of what happens to their content.

In its press release, Contentos said, “Unlike similar projects building new products and features to adapt to blockchain technology, the Contentos team has already integrated with three successful products, LiveMe, PhotoGrid, and Cheez, and is currently available to users around the world.”

Binance Labs Head Ella Zhang said, “We are dedicated to identifying the real use cases to implement blockchain technologies. There’s a clear pain-point to be solved in the content creation industry, and we see Contentos is the right team with critical resources to solve the problem.”

Contentos CEO and co-founder Mick Tsai explained, “The idea for Contentos began when I noticed a serious need for a decentralized content ecosystem offering transparent and fair monetization of creators’ content, and no third-party censorship or removal of content,” adding that the collaboration with Binance would help “in pursuing our goal to revolutionize the preservation and monetization of digital content, while working towards creating a more positive ecosystem for all content creators, influencers, and content consumers.”

The Contentos website outlines the advantages of using blockchain for monetization of content: peer-to-peer revenue distribution; decentralized traffic distribution; trackable copyright transactions; and an immutable credit scoring system. Currently, the Contentos ecosystem has 3.5 million videos and 159.4 million live-streamed videos.

Among other partnerships Contentos has formed are those with Ontology, which customizes blockchains depending on their application, and the NEO Foundation, which provides an investment platform for blockchain projects.

Last June, Binance Labs announced its allocation of $1 billion to aid startups. It has also begun looking into investments in Africa, where it sees adoption potential beyond that in developed regions. According to Binance, Africa may overtake Asia in usage of cryptocurrencies and blockchain technology.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.